Legado Capital Successfully Closes Diversified Energy Corporation's $400,000,000 Acquisition Financing ABS Transaction

Rhea-AI Summary

Diversified Energy (NYSE: DEC) completed a $400 million asset-backed securitization on Dec 3, 2025 to finance its acquisition of Canvas Energy. Legado Capital Advisors served as DEC's Structuring Agent and Debt Financial Advisor and supported an ABS used directly for acquisition financing without a bridge facility, which the advisor said saved time and costs.

Key deal features include a master trust ABS XI note, a private securitization tied to DEC's strategic partnership with The Carlye Group, and an A-tranche blended coupon of 5.97%. The transaction is described as strengthening DEC's capital structure by providing long-term, low-cost funding aligned with Canvas Energy's asset profile.

Positive

• Acquisition financed with a $400 million ABS
• A-tranche priced at a blended coupon of 5.97%
• Used ABS directly without a bridge, saving time and costs
• Described as strengthening DEC capital structure with long-term funding

Negative

• None.

DEC closes on MidCon acquisition using ABS for acquisition financing with support from Legado, marking DEC's 11th successful ABS financing.

HOUSTON, Dec. 3, 2025 /PRNewswire/ -- Legado Capital Advisors, LLC is proud to announce the successful completion of Diversified Energy Corporation's (NYSE: DEC) $400 million ABS financing of the Canvas Energy acquisition. Legado Capital Advisors ("Legado"), an independent advisory and capital solutions firm, served as DEC's Structuring Agent and Debt Financial Advisor.

"It was a pleasure to have worked on this transformative financing with the Diversified team as this ABS was used for direct Acquisition financing without the need of a Bridge Facility, saving time, costs, and ensuring a seamless closing," said Victor Mendoza, Head of Legado Capital Advisors. "This demonstrates the impact and benefits of the ABS product, and it will enable buyers to optimize their cost of capital when looking at acquisitions and sellers to receive top dollar for their assets".

Highlights on the ABS:

• $400 million ABS XI note structured as master trust
  
  
• Private asset backed securitization leveraging DEC's previously announced strategic partnership with The Carlye Group
  
  
• A tranche notes priced at blended coupon of 5.97%

The financing transaction further strengthens Diversified's capital structure and provides long-term, low-cost funding aligned with the high-quality asset profile of Canvas Energy.

About Legado Capital Advisor 

Legado Capital Advisor is a leading advisory and capital solutions firm specializing in structured finance, strategic transactions, investor positioning, and capital markets execution for companies across the oil and gas sector. The firm brings deep industry expertise, a relationship-driven approach, and innovative financial advisory to help clients optimize capital structures and achieve long-term value creation. Securities are offered through Finalis Securities LLC Member FINRA / SIPC. Legado Capital Advisors, LLC is not a registered broker-dealer, and Finalis Securities LLC and Legado Capital Advisors, LLC are separate, unaffiliated entities.

Media Contact: Kim Salinas, Kim@LegadoCap.com 

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SOURCE Legado Capital Advisors, LLC

FAQ

What did Diversified Energy (DEC) announce on December 3, 2025 about acquisition financing?

DEC completed a $400 million ABS to finance the Canvas Energy acquisition on Dec 3, 2025.

Who advised Diversified Energy (DEC) on the $400M ABS for Canvas Energy?

Legado Capital Advisors served as DEC's Structuring Agent and Debt Financial Advisor on the transaction.

What was the cost of capital for Diversified Energy's (DEC) A-tranche in the ABS deal?

The A-tranche notes priced at a blended coupon of 5.97%.

Did Diversified Energy (DEC) use a bridge facility for the Canvas Energy acquisition financing?

No; the ABS was used directly for acquisition financing without a bridge facility, which saved time and costs.

How does the $400M ABS affect Diversified Energy's (DEC) balance sheet according to the announcement?

The company said the financing strengthens DEC's capital structure by providing long-term, low-cost funding aligned with Canvas Energy's asset profile.